COMET RIDGE LIMITED — Investor Presentation 2007

Jul 30, 2007

ABOUT COMET RIDGE

Main Points

• Team building and leasing of US projects nearing completion

• 8+ square mile 3D seismic survey completed at Florence

• Seismic permitting under way at Grays Harbor

• 1[st] of 4 core holes drilled on Vader (Chehalis Basin)

• Drilling planned for Tow Creek and Chehalis Basin projects next quarter

• Acreage position strengthened at Grays Harbor, Florence and Chehalis

• Tipton West royalty sold for AUD$3 million

Introduction

The end of the fourth quarter of the 2006/2007 financial year also marks the culmination of 18 months of assembling our first class operational, technical and financial team as well as our leasing on a number of project areas in the USA.

Our Denver-based management team now comprises 7 professionals with in excess of 175 years of international and US oil and gas experience between them. Four of the senior members of the team have run significant operations in the oil and gas sector and bring a wealth of specialist expertise as well as management experience to the company.

In the June quarter we have been completing our technical studies and assembling the final parts of a commanding acreage position in all four of our play areas. This phase of our business is almost complete and we are readying for the next phase which is to drill and evaluate the projects we have in inventory. In the coming year we expect to drill between 10 and 12 wells including at least one well on the Grays Harbor project.

In the United States, your Company is pursuing a two pronged strategy:

The first revolves around finding "new oil in old fields" - mainly in the Rockies. We have two projects under lease, Tow Creek/Bear River in Northern Colorado and Florence in southern Colorado. Both areas produce high quality oil from fractures.

The second strategic "theme" is to pursue large acreage positions in "proven but overlooked" basins. We define "proven" to mean that oil and gas have already been proven to exist in a specified geological area by past drilling.

Comet Ridge is an Australian-listed oil and gas explorer transitioning to producer with projects in Australia & USA

The Company’s strategy is to capture meaningful interests and, via operatorship, control of large acreage positions covering high potential impact oil and gas opportunities, in both mature fields and in proven, but overlooked, basins

Comet Ridge is capitalizing on its local experience in the USA through development of its Pacific Northwest & Rocky Mountain projects

Comet Ridge is also advancing a number of key projects in Australia

USA

Pacific Northwest

• Grays Harbor (COI: 100%)

• Cedar Creek/Vader (40%)

Rocky Mountains

• Tow Creek (37.5%)

• Bear River (33.75%)

• Florence (39%)

AUSTRALIA

Queensland

• Mahalo (40%)

• Galilee Basin (100%)

New South Wales

• Gunnedah Basin (20 – 25 %)

ASX CODE: COI

ASX Listed: ……………….19 April 04 Shares on issue: ………..104 million Unlisted options: …………. 8 million Top 20: ……………………… 44% Directors: ……………………12%

We target areas where we can acquire large land holdings at low entry cost. Comet Ridge, via its US subsidiary St. Helens Energy LLC, has interests in 620,000 acres over two project areas in the State of Washington. The first is Grays Harbor where the Company is pursuing conventional oil and gas. Here the Company controls in excess of 450,000 acres with a 100% interest. The second project area is in the Chehalis Basin of southern Washington where St. Helens have a 40% interest in over 175,000 acres. Gas in shallow coals and sandstones is the main target for this project.

Recent and planned activities for each area are described below:

PACIFIC NORTHWEST, USA

Grays Harbor (Washington - Comet Ridge via St Helens, Operator with 100%)

Significant progress has been made on the Company’s flag ship project at Grays Harbor in western Washington (Figure 1).

Comet Ridge, via its subsidiary St. Helens Energy, LLC, has secured a seismic contractor to acquire 2D seismic data over a number of prospective structures including two that are interpreted to already be gas discoveries. The intent of the 2D seismic is to high-grade the best well locations on the prospects the Company has previously mapped using its 450 miles of recently reprocessed seismic data.

Figure 2 is a schematic cross section across one of the mapped prospects. It shows a well on the eastern side of the structure that encountered a continuous gas column totaling around 1,100 feet or 335m. To put that into perspective, the Eureka Tower in Melbourne (Australia’s tallest building), is 300m tall. On the west side of the structure two shallow wells blew out and a third well tested gas on penetrating shallow sands above the main target. This structure covers approximately 2,800 acres (~ 11 sq km) and is capable of containing between 100 to 250 BCF of gas.

Permitting of the survey has started and acquisition is expected to commence in August/September subject to permitting and forestry operations. The total mileage to be shot in this program is dependent upon when a partner is secured and discussions with such partner. Comet Ridge has commenced marketing the project to US companies and significant interest is being shown. This high level of interest stems from the magnitude of the potential gas resource identified by the Company’s work (between 500 BCF and 6.6 TCF of gas, un-risked), from the strong oil and gas shows recorded in the past, from the presence of gas pipeline infrastructure and from a premium gas market.

St. Helens has continued to successfully obtain key acreage in the basin, recently acquiring another 8,000 acres at the May State lease sale and approximately 2,500 acres of strategically situated privately held leases over prospective structures. Lease acquisition costs and terms are very favourable. The Company now controls approximately 450,000 acres and expects to further strengthen this already commanding leasehold position in the near future. For competitive reasons, Comet does not publish its land position until such time as all key acreage is secure, but we expect to be able to provide shareholders with a detailed description of the project, including a sense of our current acreage holdings, during the next quarter.

Every effort is being made to commence drilling on this exciting high impact play late this year/early next.

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Figure 1. Location of Grays Harbor Basin Project in

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Figure 2. Schematic Cross Section through Prospect

Vader/Cedar Creek (Chehalis Basin, Washington - Comet Ridge via St Helens 40%)

The operator, Cascadia Energy, has secured a new specialized coring rig to recommence drilling on the Vader/Cedar Creek project in the Chehalis Basin in southwest Washington. An additional three core hole drilling program (in addition to the recently drilled CEC State 3-36-13-3) is planned with operations expected to commence by early September (Figure 3).

The initial hole in the four well program (CEC State 3-36-13-3) was drilled to a depth of in encountered strong gas shows in a number of coal seams totaling 52 feet (16m) in thickness down to a depth of 2,600 feet (792m). This well extended the prospective fairway further into the basin. Despite numerous attempts, no cores were retrieved in the hole. This unacceptable performance on the part of the drilling contractor resulted in the rig being released after the first hole.

The three planned holes will test three different areas in the Chehalis basin and are aimed at proving up a significant gas resource in shallow coal beds of the Cowlitz Formations. One of the holes will also target gas trapped in shallow sandstone reservoirs on trend with a hole that tested 700 mcfd of gas from a depth of 700 feet (213m)

The joint venture partners have recently identified a new highly prospective area for coal seam gas elsewhere in the basin and have already captured a strong leasehold position of private and State leases totaling 18,200 acres (73 sq km). Negotiations concerning another package of leases are ongoing.

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Figure 3. Location of Chehalis Basin Project showing acreage position and planned coreholes

ROCKIES, USA

Tow Creek (Routt County, Colorado – Comet Ridge Operator with 37.5%)

Preparations to re-enter and sidetrack the Coal View Unit 31-4 well on the southern part of the Tow Creek structure are under way. Comet Ridge is evaluating a number of rigs that are available and operations are expected to commence in August.

The Coal View Unit 31-4 well was drilled last winter. A work string was lost in the hole during completion operations. Extended recovery operations were unable to retrieve it, so a new hole will need to be drilled around this obstruction. The original well was drilled on the eastern flank of the large Tow Creek anticline looking for extensive fracturing (the fractures provide the storage and flow paths for the oil). Strong oil and gas shows were encountered over a 245 foot interval in the Niobrara Formation and free oil was recovered during the completion attempt.

Subsequent to the reporting period Comet Ridge secured all required drilling permits for the third proof of concept well, the Coal View Unit 18-14.

Bear River (Routt County, Colorado – Comet Ridge Operator with 33.75%)

Significant analysis has been conducted on the production performance of the Peltier 1112 well that was also drilled during the winter of 2007. The Peltier well was drilled on the western flank of the Tow Creek anticline and was located to intersect a productive fault trend, down-dip from a well that has produced almost 500,000 barrels of oil. The Peltier well did encounter the predicted fault trend and was successfully completed over three reservoir intervals in the target Niobrara, but production performance has not met expectation with low (5 to 10 BOPD) inflow rates.

Analysis of pressure buildup surveys suggests that the cause of the low production rates is largely due to poor reservoir quality, but a thorough review of the drilling fluids used suggests that there is a possibility that the fractures were partially or completely plugged during the drilling process.

Research conducted by highly experienced drilling fluid specialists at Halliburton’s research labs has identified a combination of specialty chemicals that may be able to break down some of the potential blocking agents in the fractures. These chemicals can be simply pumped down the hole along with a volume of hot oil and left to soak for a few days. This relatively low cost operation is likely to occur within the next couple of weeks, pending partner approval.

A second potential means of improving the production rate is shooting a large number of new holes in the steel liner that is in the hole. Special charges are designed to blast small holes through the steel pipe and penetrate deep into the formation past the damaged zone thought to exist around the wellbore. This is a more expensive option and may or may not be done in conjunction with the previously described chemical treatment, but is being evaluated as a possible course of action for the coming weeks, subject to partner approval.

The Company believes, based on evidence provided by a producing well drilled on the northern part of the structure (which is incidentally currently the third highest rate producing oil well in the State of Colorado at 200 BOPD), that significant volumes of oil remain to be produced from the field.

Florence (Fremont County, Colorado – Comet Ridge Operator with 39%)

Acquisition of over 8 square miles of three dimensional (3D) seismic was completed in mid July (Orange outline in Figure 4). All recorded data has now been submitted for processing and the first interpretable data volumes are expected by the end of August. This survey overlaps a small (2 sq mile) survey (blue outline) previously shot by our private US partners and when combined with that data will provide almost 10 square miles of coverage over the most prolific portion of the historic Florence oil field. This field has produced over 15 million barrels of oil in its 114 year history, with the vast majority of the oil being produced from fractured shales at shallow depths. The seismic data is expected to provide a critical insight to the distribution and orientation of the oil bearing fractures in the Niobrara and Pierre Shale Formations so that new directional wells can be optimally located. Comet Ridge controls approximately 7,500 acres of largely contiguous leases over the field (Shown in yellow on map)

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Figure 4. Florence Project showing 3D survey & offset wells

Our US partners drilled the Royal Gorge #1 on the basis of the small 3D they shot in 2004. That well was completed in the Pierre Formation at around 2,700 feet (822 m) and has been consistently producing around 100 BOPD for the last two years and has produced a total of 72,000 barrels of oil. Given the wells continued stable production Comet Ridge estimates the well may produce upwards of 200,000 barrels of oil.

ASX announcements made by a number of Australian competitors during the quarter advise that the Mountain Petroleum Corporation, West Florence-1 well, drilled approximately 2 miles (3 km) west of Comet Ridge’s acreage (Figure 2), encountered four potentially productive intervals and that the will be production tested in late July, 2007.

Casing was run in the hole to 1,956 m (6,417 feet) following “good” mud log gas shows in the Muddy J and underlying Dakota sands. The show interval is reported to be 53 m (174 feet) thick and wire line logs indicate 7.6 m (25 feet) of net gas pay with “fair to good” porosity.

Additional oil shows were observed in the Codell Formation sand and over “large gross intervals in the secondary target Niobrara Formation and the Pierre Shale.”

The gas shows and logged pay in the Muddy J and Dakota sands add considerable exploration potential to the approximately 7,500 acres (30 sq km) controlled by Comet Ridge and its joint venture partners. Mountain Petroleum estimates prospective gas resources of between 100 and 200 BCF in the Muddy J and Dakota sands and an additional 15 million barrels of oil in the shallower Codell, Niobrara and Pierre Formations. The presence of extensive Niobrara and Pierre Formation oil shows, which are Comet Ridge’s main targets, is very encouraging.

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Lockhart Geophysical Vibrator Truck acquiring 3D seismic on Florence Project in Colorado

AUSTRALIAN ACTIVITIES

Tipton West (Surat Basin, QLD - Comet Ridge 1.5% Gross Royalty)

The Tipton West Royalty was sold to Brisbane based Pure Energy Resources Limited for AUD$3 million at the end of the report period.

Mahalo, Northern ATP 337P (QLD - Comet Ridge 40%, Non Operator)

A third party technical review of the Mahalo project incorporating the results of the five holes that Comet Ridge funded has been initiated. Comet Ridge believes the project warrants further work and will develop a forward strategy based upon the results of the work.

ATP’s 743 and 744P (Galilee Basin, QLD - Comet Ridge 100%)

No change.

PEL 427 & PEL 428 (Gunnedah Basin, NSW – Comet Ridge 100% & 80%)

Farminee Eastern Star Gas has advised that they will be acquiring 129km of 2D seismic in PEL’s 427 and 428. The program is expected to commence in the 3rd quarter. They have both conventional and coal seam gas targets.

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Mahalo
Galilee Basin
Permits
Gunnedah
Basin
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Figure 5. Location of Australian Projects

FUTURE PROGRAM

The Company is planning for a high level of operational activity in the next twelve months. The activity as currently outlined represents a capital program of between US$7.2 to 11.5 million over the next 12 months. Table 1 shows the activity and the forecasted net capital spending. Figure 5 shows the anticipated timing of the activities. The Company expects to fund the activity via its existing cash and through farm out arrangements.

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Region Project 2007/08 Net Capital
Activity (US$ million)
Australia Mahalo TBD TBD
Gunnedah Basin Seismic + 2 wells Farmed out
Galilee Basin Technical Studies Farmed out
Tipton West Royalty SOLD 0
USA Tow Creek/ Bear River 2 to 4 wells $1.2 to 2.5
Florence Seismic + 3 wells $1
Grays Harbor Seismic + 1 well $4 to 7
Vader/Cedar Creek 4 wells $1.0
TOTAL 10 to 12 wells $7.2 to 11.5
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Table 1 – Projected 2007/2008 Activity and Capital Spending

Figure 5 Anticipated timing of the activity.

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FINANCE

As of June 30 the Company had cash on hand of US$2.63 million (AUD$3.12 million) and received an additional AUD$3 million on 2 July, 2007 as proceeds from the sale of the Tipton West royalty.

The Company received proceeds of AUD$200,000 from the exercise of 1 million options at AUD$0.20, and a further AUD$9,605 from the exercise of 24,014 listed options at AUD$0.40 during the reporting period. A total of 14.16 million options, exercisable at AUD$0.40 on or before June 29, expired without being exercised by shareholders.

At the end of the report period the Company had issued capital of 104.9 million ordinary fully paid shares and 8.08 million unlisted options having varying exercise prices and dates.

CORPORATE

The Company changed its registered address to the following:

C/- Endeavour Corporate Suite 8, 7 The Esplanade Mt Pleasant, 6153 Western Australia Phone: +61 8 9316 9100 Fax: +61 8 9315 5475